Capital First Limited BOW NCD (IFC-39031)

Countries
  • India
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 25, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Capital First Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 52.86 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Apr 21, 2017


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Project Description

The project involves IFC financing of up to INR 3.4 billion (US$50 million equivalent) to Capital First Limited (“CFL” or the “Company”), aSystemically Important Non-Deposit Accepting Non-Banking Financial Company in India. The funding will be used for financing the growth of CFL’s lending portfolio to women-owned small and medium enterprises (“WSMEs”). This investment is part of IFC’s strategic target to reach 10 million MSMEs during FY17-21.

CFL serves micro, small and medium enterprises (“MSMEs”) and fast-growing emerging middle class consumers in India. Ithas a highly diversified loan book of INR188.00 billion (US$2.8 billion equivalent) as of December 31, 2016, of which 91% consists of MSME and consumer financing.The Company has financed 3.5 million customers to-date in 222 locations, including low-income states, across India.

Investment Description
  • International Finance Corporation (IFC)

CFL is a publicly listed company. Its major shareholder is Warburg Pincus, which through its affiliated funds collectively holds 61.09% of the Company’s equity as of December 2016. Other shareholders of the Company include financial investors such as Goldman Sachs Asset Management, GIC (the Sovereign Wealth Fund of the Government of Singapore), HDFC Standard Life, Government Pension Fund Global (Norges Bank Investment Management), Birla Asset Management, Ashburton, Ashmore and other leading global and domestic institutional investors. The Company’s long term credit rating is AAA.

Mr. V. Vaidyanathan founded the company by a management buyout backed by Warburg Pincus and has been the Chairman and Managing Director of CFL since September 2012. He has transformed the Company into one of the leading players in the MSME and consumer financing space in India.

This is the second IFC debt investment in the Company; the first debt investment of INR 3.5 billion (US$52.5 million equivalent) was completed in 2016.

Private Actors

CFL is a publicly listed company. Its major shareholder is Warburg Pincus, which through its affiliated funds collectively holds 61.09% of the Company’s equity as of December 2016. Other shareholders of the Company include financial investors such as Goldman Sachs Asset Management, GIC (the Sovereign Wealth Fund of the Government of Singapore), HDFC Standard Life, Government Pension Fund Global (Norges Bank Investment Management), Birla Asset Management, Ashburton, Ashmore and other leading global and domestic institutional investors. The Company’s long term credit rating is AAA.

Contact Information

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

CONTACTS

Capital First Limited
Saptarshi Bapari
Head – Strategic Initiatives & Investor Relations
+91 (22) 4042 3400
saptarshi.bapari@capitalfirst.com
One Indiabulls Centre, Tower 2A & 2B, 10th floor, Senapati Bapat Marg, Lower Parel (W), Mumbai
www.capitalfirst.com